💸Financial Planning
ReNVEST DAO's financial planning is structured to ensure sustainable growth and profitability as we expand our operations across the EU. By carefully managing operational costs, projecting realistic revenue streams and maintaining a strategic focus on reinvestment, ReNVEST DAO is well-positioned to achieve its long-term objectives and deliver significant value to investors.
1. Operational Costs
Operational costs for ReNVEST DAO will vary by country. As we launch in three EU markets this year and prepare for twelve more next year, our financial planning includes the following cost drivers, variable per market:
Legal Compliance: Ensuring compliance with local property and securities laws, securing necessary approvals and exemptions, and ongoing monitoring to adapt to regulatory changes.
Marketing: Digital marketing campaigns, investor education programs, public relations activities and more.
Property Management: Maintenance, Repairs, Utilities
Partnering with professional property management firms to maintain properties and maximize rental income. This includes costs for tenant relations, maintenance and rent collection.
Will be covered by fees, or from profit margin.
Restoration and Reparation Collective Fund: 5% of the profit associated with each property sold through ReNVEST DAO and every STO tokenholder will contribute with 10% of each monthly rent to cover mandatory repairs that may devalue the asset in lack of reparation.
Property Taxes & Fees (based on each jurisdiction and city state fees)
Notarial Fees (based on each jurisdiction and city state fees)
Accounting (based on each jurisdiction and city state fees)
Platform Development & Maintenance: Ensure seamless user experience, cybersecurity and operational efficiency.
Personnel/Employees in the roadmap
Fiduciary Director in each market where ReNVEST DAO will tokenize real-world assets (RWAs)
Sales Reps
CFRO
Marketing and Events RP
2. Revenue Projections
ReNVEST DAO's revenue projections are based on our realistic target to tokenize €179,000,000 worth of properties annually at the Union level under the current legal framework. The primary revenue streams include:
Transaction Fees: 1% of total tokenized value
Projected Revenue: €1,790,000
These fees are charged on the exchange of RNVD tokens for STOs and other transactional activities within the platform or peer-to-peer when the previous investor decides to transfer his STOs to a newly approved buyer. The seller supports the transaction fees.
Property Management Fees: 5% of rental income
Projected Revenue: €716,000
Assuming an average rental yield of 8%, the projected rental income from tokenized properties would be €14,320,000. ReNVEST DAO charges a 5% fee on this income for property management to be transferred to the relevant service providers and for other maintenance operations and staff.
Platform Services:
Projected Revenue: €500,000-€1,000,000 per annum
This includes fees for additional services such as legal support, investment advisory via regulated third-parties, property valuation offered to investors. and other commissions from strategic partnerships.
In total, the projected annual revenue from these streams is approximately €3,006,000 - €3,506,000.
3. Profit Margin
ReNVEST DAO's projected profit margins per tokenized country/market range between 9-20%. This margin accounts for operational costs, fees and reinvestments necessary to scale the business model in line with our roadmap.
The reinvestments will focus on:
Market Expansion: Launching in new countries and regions, adapting to local market conditions and establishing a presence in high-demand real estate markets.
Technology Development: Continuously improving the platform, integrating advanced blockchain features and enhancing user experience.
Strategic Partnerships: Building alliances with real estate agencies, financial institutions and legal firms to strengthen the ecosystem and expand service offerings.
Community Engagement: Fostering a robust DAO governance structure, engaging with investors and promoting community-driven initiatives.
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